SHU Portfolio: Skechers Is Remarkably Cheap
- No retail apocalypse for Skechers. Its US stores revenues are up 14.5% with same store sales up a whopping 7.7%.
- Its international business is also booming, and after heavy investments this year, that will show off on the bottom line next year.
- Yet the shares went down after the Q2 good news show, except the earnings miss, but that should be redressed next year.
- An EV/S valuation of 0.8 seems too low in this market for a company growing in the mid teens.
- Especially considering a very healthy balance sheet, a solid profit outlook, and plenty of cash generation.
Source: SHU Portfolio: Skechers Is Remarkably Cheap – Skechers USA Inc. (NYSE:SKX) | Seeking Alpha
Tags: SHU Portfolio · SKX